Fundamentals of Corporate Finance

Introduksjon

A corporation is a separate legal entity and can be viewed as a vehicle for making-, organizing-, and funding investment decisions. In a limited liability corporation, shareholders have delegated investment decisions to the board of directors and an administration (the Chief Executive Officer, Chief Financial Officer, etc.).  The course will establish a framework for how an administration ought to make investment decisions on behalf of shareholders.

Kursets innhold

1. Value and Capital Budgeting
    a. Discounted Cash Flow Valuation
    b. Net Present Value
    c. Making Investment Decisions

2. Risk and Return
   a. Returns
   b. Measuring risk
   c. The Capital Asset Pricing Model
   d. Risk and Cost of Capital

3. Capital Structure
   a. Introduction to Long-Term Financing
   b. Equity financing
   c. Debt financing
   d. Capital Structure and Corporate Value
   e. Limits to the Use of Debt

4. Corporate Valuation
   a. Valuation case

5. Leasing
   a. Types of Lease Financing
   b. Lease vs. Buy Decision

6. Options
   a. Call and Put Options
   b. Valuing Options

7. International Corporate Finance
   a. The Foreign Exchange Market: Triangular Arbitrage
   b. The Foreign Exchange Market: Parity Relations
   c. International Capital Budgeting
   d. Exchange Rate Risk

Forbehold

Dette er et utdrag fra den komplette kursbeskrivelsen for kurset. Dersom du er aktiv student på BI, kan du finne de komplette kursbeskrivelsene med informasjon om bl.a. læringsmål, læreprosess, pensum og eksamen på portal.bi.no. Vi tar forbehold om endringer i denne beskrivelsen.